BUSN 212 - CH 3

in Net income , the revenues minus expenses

• false

• true

_________ is the excess of revenues over expenses; net loss is the reverse.

• continuity

• Expenses

• Revenues

• Net income

________________ increases in owner’s equity resulting from selling goods, rendering services, or performing other business activities.

• continuity

• Expenses

• Revenue

• Net income

_____________ decreases in owner’s equity resulting from the cost of selling goods or rendering services in the course of earning revenue.

• continuity

• Expenses

• Revenue

• Net income

________________ is the manipulation of revenues and expenses to achieve a specific outcome While not illegal within small ranges, larger variations can mislead the user and lead to fraudulent financial reporting. 

• continuity

• Expenses

• Revenue

• Earnings management

_________any 12-month period; it may or may not correspond to the calendar year

• Net income

• accrual

• deferral

• fiscal year

________ recorded in the accounting period in which they are earned,

______ recorded in the same accounting period as the revenue generated by the particular expense

• accounting

• not mentioned

• revenues
  expenses

• expenses
  revenues

________ recorded before cash is received, a receivable is also recorded

• accounting

• not mentioned

• revenues

• expenses
  

_______ recorded before cash is paid, a payable is also recorded

• accounting

• not mentioned

• revenues
  

• expenses
  

_____________ consists of all the techniques used to apply the matching rule.

• Prepaid rent

• management information system accounting

• management accounting

• Accrual accounting